SBI cuts savings bank account interest rate, FD rates

India’s biggest bank, State Bank of India or SBI today cut interest rate on savings accounts with balance up to ?1 lakh to 3.25%, from 3.5%. This will be effective from 1st November 2019. SBI has a deposit base of over Rs. 28 lakh crore. SBI has also cut interest rate of retail fixed deposits or FDs by 10 basis points for ‘1 year to less than 2 years’ maturity with effect from 10th October, 2019.

SBI had earlier linked the interest rate on savings account deposits with balance of over ?1 lakh to repo rate. Currently, it stands at 3%.

SBI cited adequate liquidity in the system for the interest rate cut on savings accounts and fixed deposits.

SBI today also cut its marginal cost of funds based lending rate or MCLR by 10 basis points across all tenors – its sixth cut in MCLR in FY 2019-20. The rate revision becomes effective from 10th October. SBI’s one-year MCLR comes down to 8.05% per annum, from 8.15% per annum, making home loans cheaper for borrowers.